Public goods are characterized by being:

Question

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B) Non-excludable and non-rivalrous — one person use does not diminish another and people cannot be prevented from using them. Public goods: non-excludable (can not prevent use) + non-rivalrous (one use does not reduce availability). Examples: national defense, clean air. Market underprovides → government intervention.

Public goods are characterized by being:

✓ Correct Answer: Option B

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